USDJPY approaches yesterday’s low

USDJPY buyers took a chance late yesterday and early today when the price briefly broke above its 100 hourly moving average and swing zone between 133.505 and 133.652. The high price reached 133.82 and 133.78 at respective highs, but the momentum could not be sustained. At the start of the Asian session, the price stalled just off the 100 hourly moving average and moved lower. Buyers turned to sellers.

The subsequent downward move saw the price retrace almost all of yesterday’s gains. Yesterday’s low reached 131.709. The low price just came within 10 pips of the 131,804 low. The price is back near 132.00. On the downside, a break below 131.709 will have traders looking towards 131.30 all the way to 131.567 (swing zone).

Looking at the daily chart, there is a large swing zone between 131.246 and 132.02 (see the red circles on the chart below). The price has returned to this swing zone. Will buyers show up in this area? A move below would increase the bearish bias.